Crypto Friendly Policies Rapidly Drawing Companies to Thailand

Published on August 10, 2018

Soon after Thailand adopted its regulations for cryptocurrencies and initial coin offerings (ICOs), companies reportedly pile up to apply for licenses to operate in the country. According to the Thai Securities and Exchange Commission, about 50 ICO projects are seeking to launch, five portals plan to open for business and 20 crypto exchanges have applied for a license.

Preliminary Surge – 20 Exchanges, 50 ICOs

Thailand’s regulatory framework for cryptocurrencies and ICOs went into effect on July 16. The Thai Securities and Exchange Commission (SEC), the main regulator of the country’s crypto industry, began accepting applications for crypto licenses on July 24.

On Wednesday, the SEC revealed the number of companies that have applied for various licenses or are interested in applying, local media reported.

According to Mr. Rapee Sucharitakul, the SEC secretary-general, about 50 projects have shown interest in issuing tokens. Five companies are interested in becoming ICO portals, three of which have already applied. As for crypto exchanges, citing that “license approvals are being processed,” the Bangkok Post quoted him saying:

There are also around 20 companies that have applied for licenses to operate as digital asset exchanges.

Coin Asset’s ATM

Among companies that have applied for a license is Coin Asset, a six-month-old Thai crypto exchange with about 10,000 users. The exchange currently processes approximately 2-3 million baht (~US$60,186 – $90,279) daily, CEO Suvanus Yamdee told Prachachat Turakij newspaper.

Coin Asset’s ATM.

The company has a 90-day temporary license to operate an exchange while its application with the SEC is being reviewed, the publication noted.

The exchange has also applied for a license to operate crypto ATMs, which it unveiled last week. Claiming that the ATM is the first of its kind among Asean countries, Mr. Suvanus explained that it supports multiple fiat currencies – the baht, euros, yuan, and dollars. With a minimum transaction amount of 100 baht (~$3), the ATM allows customers to buy and sell BTC, BCH, ETH, LTC, XMR, and DASH.

If approved, the team plans to install the ATMs at Thailand’s major international airports, Suvarnabhumi and Don Mueang, as well as in Chiang Mai.

Bright Crypto Future

When a company files for a crypto business license in Thailand, the “market regulator will forward documents to the finance ministry within 90 days,” the Bangkok Post described. The finance ministry will make a decision within 60 days.

Applicants must meet a number of criteria such as being a listed firm in Thailand and having the required paid-up capital, the news outlet explained. “The directors, executives and company shareholders must also have SEC approval.”

Thuntee Sukchotrat, the CEO of Jibex, a local exchange backed by IT company J.I.B. Computer Group, was quoted saying:

I believe that investors will invest in digital assets instead of stocks in the future…The investment ratio of ICOs to stocks will be on par within two years.

This week, the country’s central bank also green-lighted subsidiaries of financial institutions for crypto activities.

Do you think many more crypto companies will apply for licenses in Thailand? Let us know in the comments section below.